This is part two of critical budgeting and continues from part one.

1. Part Two: When Ends Don’t Meet
Short Term Solutions When You Don’t Have Enough

2. But I Have Other Bills
I have enough to pay for the Big 5 but not much else
• Credit Cards
– Call and ask for assistance. Don’t feel forced to make payments if you can’t pay the Big
5.
– Contact Origin SC and enroll in our Debt Management Program and see if you can get a
lower monthly payment and interest rate for all of your credit cards.
– Credit card companies are usually willing to work with clients right now but you have to
contact them!

3. But I Have Other Bills
I have enough to pay for the Big 5 but not much else
• Student Loans
– Cares Act for student loans what does it mean?
• Suspends monthly payments and interest accrual for FEDERAL student
loans until September 30, 2020. This suspension is automatic but not all
loans qualify. Check with your servicer to make sure the type of loan
you have qualifies.
• If you choose to make a payment, you will pay down the principle
balance of the loan.
• All months will count towards loan forgiveness programs even if you do
not make a payment through September 30, 2020.

4. But I Have Other Bills
I have enough to pay for the Big 5 but not much else
• Student Loans continued…
– The CARES Act dose not apply to Private Student loans.
• You must call your loan servicer to check on programs available.
• If CARES Act does not apply to your loans, call and ask servicer for assistance or go online and apply for a
hardship or a deferral. Studentloans.gov is a great place to start.

5. But I Have Other Bills
I have enough to pay for the Big 5 but not much else
• Medical Bills
– Call and speak with the office to see if they can help. Trying to make other
payment arrangements is usually best.
– If the bills are older than 2 years and not from a state facility you may be
able to ignore them, they have the least negative affect on your credit
score.

6. But I Have Other Bills
I have enough to pay for the Big 5 but not much else
• Subscriptions
– Cable, Amazon, Netflix, and Hulu are just some services that might be
wise to cut back or eliminate for now.

7. I Cant Pay My Other Bills
“So what should I do if I can pay the Big 5 but not the other
stuff?”
• If you have called the companies and they are unable to work
with you…. Don’t pay them! It is more important to pay the
Big 5 than any of the other bills. Not paying any other bills
will hurt your credit score but you will have food, shelter,
transportation and medication. Once your income increases
again you can make arrangements to resume payments and
work on rebuilding your credit score.

8. Do’s
• Pay money you have (using debit card/cash/EFT’s)
• Use your Savings
• Stop paying EXTRA on credit cards
• Look into withdrawing money from retirement
accounts. Many fees and taxes are being removed and eliminated to
assist people during this time.
• File for unemployment (if your work hours have been cut back
or cut entirely)
• Breath, take a walk, connect with friends and family
using the internet or any other ways you are able.

9. Don'ts
• Take a loan out
• Use credit cards (without having the money to pay it back currently)
• Pay extra on debts ( you may need the cash)

10. What Order Do I Pay if I Don’t Have
Enough to Cover Everything?
• Pay for the Big 5 First
1. Housing
2. Medication
3. Food
4. Transportation
5. Utilities
• Pay what you can of everything else cutting back where you can
.

11. When Money Starts Flowing Again
• It is important to have a plan for every dollar you have right now!
– Write the amount you receive
– Write a list of the bills you need to pay
– Start by paying the Big 5 first
– End by paying what you deem the most important after the big 5 are
covered

12. Stimulus Check
• If you qualify for a stimulus check or financial aid grants, don’t spend it 5
times!
• How do you spend an amount 5 different times?
– You don’t write down how you are going to spend it the first time
(budget).

13. Sally’s Budget
 I have $2000 for the month
 -1100 Rent
 -300 Utilities, Internet, Phone
 -300 Car payment and
Insurance
 -50 Medication
 -250 Food (cuts food budget)
 Sally has all needs met
 ________________________
 Credit card- contact and ask for
help
 Student loans ask for a deferral
Sammy Doesn’t Plan
 I have $2000 for the month
 -150 Student loan
 -300 Food
 -400 Utilities and Cable
 -1100 Rent
 -50 Credit card payment
 Sammy is out of money
 ______________________
 Sammy still needs medication
and to pay his car payment.
Example: Take a look at Sally & Sammy’s budgets below. Sally lives within her means and all her
needs are met. Where can Sammy reduce some of his spending to better meet all his needs?
Keep Track of Your Spending

14. Consequences of Not Paying Debt
• It may be necessary to stop paying debt to keep the Big 5 paid during a
temporary hardship
– This could have consequences like a lower credit score and calls from
creditors. (Just remember, they can bug you but they can’t hurt you.)

15. Caution
• The budgeting in this presentation is only for short term
situations of less then 6 months and is not a long term
strategy!

16. Think Positive and Don’t Quit!
Take control of your situation and make
the necessary financial decisions to get
ahead!
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